OFAC ISSUES FREQUENTLY ASKED QUESTIONS ON NEW CUBA POLICY
May 2, 2015
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued new and updated Frequently Asked Questions (FAQs) pertaining to its recent amendments to the Cuban Assets Control Regulations (CACR). Below are a few highlights from the FAQs pertaining to air carriers:
- The CACR allow air carriers subject to U.S. jurisdiction to provide air carrier services to, from or within Cuba, in connection with authorized travel, under a general license. While carriers do not need to obtain a specific license (as they did in the past), they must confirm that passengers traveling to Cuba fall within one of the twelve categories of authorized travel. In addition, air carriers wishing to provide service will still need to secure regulatory approvals from other concerned U.S. Government agencies, including the Department of Transportation (Office of the Secretary and the Federal Aviation Administration) and the Department of Homeland Security.
- Airlines and travel service providers subject to U.S. jurisdiction must retain for at least five years from the date of the transaction a certification from each customer indicating the provision of the CACR that authorizes the person to travel to Cuba. In the case of a customer traveling under a specific license, a copy of the license must be maintained on file. The names and addresses of individual travelers must also be maintained on file for at least five years.
- Depository institutions, as defined in 31 CFR § 515.333, which include certain financial institutions other than banks, are permitted to open correspondent accounts at banks in Cuba.
- While U.S. depository institutions are permitted to open correspondent accounts at Cuban banks located in Cuba and in third countries, and at foreign banks located in Cuba, Cuban banks are not generally licensed to open such accounts at U.S. banks.
- Certain Cuban nationals who have taken up residence in the United States on a permanent basis and who meet the requirements set forth in 31 CFR § 515.505 are licensed as unblocked nationals, and may participate fully in the U.S. financial system.
- Persons subject to U.S. jurisdiction are prohibited from doing business or investing in Cuba unless licensed by OFAC.
- Trade delegations are authorized to travel to Cuba only if each member of the delegation meets the criteria of an applicable general license authorizing travel to Cuba or has obtained a specific license from OFAC. Authorized trade delegations generally fall under one of two general licenses for travel authorization; either (1) 31 CFR § 515.533(d), which authorizes travel-related and other transactions incident to the exportation of certain authorized goods from the U.S. to Cuba, specifically the conduct of “market research, commercial marketing, sales negotiation, accompanied delivery, or servicing in Cuba of items consistent with the export or report licensing policy of the Commerce Department,” or (2) 31 C.F.R. § 515.564(a), which authorizes transactions related to professional research or professional meetings in Cuba.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).